Dears,
Internal Use
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What is the best practice of Issuance of an Item from Warehouse to Requested Department? I am talking about Internal usage or you can Consumable issue process. What screen will be used in GP, Inventory Transfer OR Inventory Adjustment in Minus? Please Suggest, I would appreciate, if someone can also explain the Inventory & Financial Impact..
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Hi Junaid,
When doing the transfer from CW to Accounts, do not change the quantity type. Leave the 'TO' type as 'On Hand'.
Therefore, when you do the Inventory Decrease tranaction in the Accounts site, the quantity will be available for you to 'consume'.
Best regards,
Ian.
Stewart, i am using Item Site Screen to see the inventory value? Please Suggest
You have mentioned above in your explanation a Term "so your GL does not equal your Inventory" Can you please further elaborate this? what does it mean exactly...
Everything is clear to me. Now see While doing transfer i am selecting ORDER TYPE "ON HAND" FROM and "IN USE" TO. So quantity will be reduce from CW ON Hand & Account dept will increase with "IN USE" not on hand. If i will put decrease adjust against Accounts so system will never allow me to do so because Adjustment is only done on "ON HAND' qty. Now what to do??? Should i select ON HAND on both sites in Transfer screen right so that i can do adjustment??????
thx.
Query 01
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When i am creating Transfer request from CW to Accounts, When i check my Inventory on Hand Quantity on Item Maintenance Screeen, it shows me reducing quantity clearly so what is that?
This is probably the quantity in the CW site, this should reduce, and the quantity in the Accounts site should increase. How are you checking the item quantity (What is the window name)?
Query 02
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After transfer, When i will create Decrease Adjustment, the site ID will be CW in line item ???
I don't think so. The quantity has been transferred to the accounts site. They conume some of it. The decrease transaction is beig posted to reflect this consumption. So, the decrease adjustment should be against the Accounts site.
Now let say CW has on Hand Qty 20 valued at 1000 each, If i create Transfer Request of 05 Qty from Transfer screen, it shows me On Hand Qty on Item Maintenance & item Site Maintenance 15 against CW (and 5 against accounts site??), now if i create Decrease Adjustment of 05 to reduce the stock as you mentioned, it shows me on hand Qty 10 instead of showing 15. Please Clarify...
You are posting the decrease adjustment against the CW site, and it should be posted against the accounts site. If you post it against the accounts site, the quantity in CW will remin the same at 15, and the quantity in the accounts site will reduce to zero.
Now it has to be in this way..............Please confirm..
Item Transfer Screen
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While doing Transfer On both Debit & Credit Site, the same Inventory Balance Sheet Account will be used?? Please Confirm. Depends on your set up. If you use the Site Segment ID functionality, you can have two different accounts...one for CW and one for Accounts. When you do the transfer the CW Account will be credited and the Accounts account will be debited.
Item Transaction Screen - Decrease Adjustment
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Credit = Inventory BS Account, Debit = Expense Account of Requested Department.. Please Confirm...Yes, I would guess so.
I am confused on one thing, Transfer Request is reducing Onhand Qty of CW & Increasing OnHand Qty of Accounts. you mean to say that it does not reduce Inventory Value?? Please clarify Stewart.
The transfer shouldn't reduce the overall inventory value. This is just a transfer from one site to another. You are not selling or consuming the stock. You still have the same overall quantity, but just in two different sites. Now, when the accounts department actually use up some of this stock, thats a different story, the stock quantity has to be reduced (you no longer have it, its consumed)...thats why you then post a Decrease Transaction and expense the value of the consumed inventory to the P&L.
Keep it coming!!
Hi Stewart,
Query 01
-----------------
When i am creating Transfer request from CW to Accounts, When i check my Inventory on Hand Quantity on Item Maintenance Screeen, it shows me reducing quantity clearly so what is that?
Query 02
-------------
After transfer, When i will create Decrease Adjustment, the site ID will be CW in line item ???
Now let say CW has on Hand Qty 20 valued at 1000 each, If i create Transfer Request of 05 Qty from Transfer screen, it shows me On Hand Qty on Item Maintenance & item Site Maintenance 15 against CW, now if i create Decrease Adjustment of 05 to reduce the stock as you mentioned, it shows me on hand Qty 10 instead of showing 15. Please Clarify...
Now it has to be in this way..............Please confirm..
Item Transfer Screen
-------------------------------
While doing Transfer On both Debit & Credit Site, the same Inventory Balance Sheet Account will be used?? Please Confirm.
Item Transaction Screen - Decrease Adjustment
------------------------------------
Credit = Inventory BS Account, Debit = Expense Account of Requested Department.. Please Confirm...
I am confused on one thing, Transfer Request is reducing Onhand Qty of CW & Increasing OnHand Qty of Accounts. you mean to say that it does not reduce Inventory Value?? Please clarify Stewart.
Hi Mohammad,
Yes, it is possible.
Click on Tools >> Setup >> Inventory >> Inventory Control. There is a field called 'Segment ID for Sites'. In here you can choose one of your GL Account Segments.
So, say your account format is NN-NNNN-NN, you might choose segment 3 as your segment for sites. You then create two GL accounts for Inventory - 00-5000-01 ad 00-5000-02... now you have two values for segment 3 - '01' and '02'.
Then open the Site Maintenance window (Cards >> Inentory >> Site) call up your central warehouse site and note a field on the window called Account Segment ID. In here you can select from the available values for whatever segment you choose above. So, in our example, you insert 01 here for the Central Warehouse and 02 on the Accounts Department site.
Now...an item has default posting accounts (Cards >> Inventory >> Item >> Accounts.The first one listed is the inventory account. For all items you set this to be 00-5000-01. However, anywhere in the system where an inventory posting occurs to the Accounts Department site (a receipt into this site, a transfer into this site from the central warehouse, a decrease tramnsaction against stock in this site etc.), GP will automatically replace the 01 with 02...so the GL posting accounts all end in 02.
You can do this for all the default item postig accounts. However, you must actually create these accounts in Cards >> Financial >> Account - if GP cannot find a valid account, it will stick with the default on the item card - ie it won't change the sitesegment value.
Hope this helps.
Hi,
Are you saying that you are doing an Inventory Site Transfer (Transactions >> Inventory >> Transfer Entry), and Crediting Inventory balance sheet and debiting Expense account?
This may not be correct. The transfer is simply transferring stock from one of your sites to another - its not reducing the overall quantity of the item. You still have the same quantity, so if you do a stock take / reconciliation you will have differences.
E.G. -You have 10 in the Central Warehouse site valued at 1,000 each. You transfer half to the Accounts site. In the Inventory module you will still have 10 items valued at 10,000 total...but in the GL you will have an Inventory account balance of 5,000 (the other 5,000 has been expensed to the P&L)...so your GL does not equal your Inventory.
If you are changing the Item Quantity Type at the same time - again, this is not reducing the item quantity...just changing its quantity type.
The only way to reduce the quantity is to process a decrease adjustment (Transactions >> Inventory >> Transaction Entry).
If it was me I would receive the stock into the Central Warehouse site as you are already doing. Then Accounts draw down 6 months supply, so do a Site Transfer in GP to transfer from CW to Accounts site (Debit and Credit the Inventory GL Account - so no change in the GL Balance) (The stock hasn't been consumed yet, so you still physically have it on hand). Then as Accounts use up the stock, process an Inventory Decrease transaction - Credit Inventory and Debit Expense. This could be donemonthly to reflect the total quantity consumed by Accounts in the last month.
The above correctly reflects what is actually happening.
Best regards,
Junaid,
For Internal Inventory Transfer and consumption for one of our client we had design "Barcode Inventory Transfer" using SOP +Sharepoint with Infoath +eConnect and Tough Book with scanning option .
Using Infopath form in Sharepoint Department will request Items from Main Warehouse , System will create Sales Order into Dynamics GP immediately, Once Department Head Approved Request, User will Print Picking Slip from Sales Order. --On Dilvered to Dept System will convert that sales order into Invoice.
All Sales Invoice and Order Entry with 0 Sales Price , just to avoid Receivable and After Approval created Reversal Journal Entry for Inventory Costing + Expense dr and Inventory Cr. and created some reports for Dept Inventory.
In this way we can track how much inventory we have transfer.
Thanks
Sandip
Stewart, dear i have checked throughly the same idea you mentioned. I guess, it is working perfectly. Actually Central warehouse is purchasing all items one time in a years. Then based on request from other division CW issue an item to requested division and they want to book an expense at the same time so i have mapped CR inventory balance Sheet account & DR Expense Account simple as that.
One more thing i have done, i have selected Order type on Transfer Screen from "ON HAND" & to "In use".
I am sure, this is the way how it should work.
Thank you for your informative reply.
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